Question

The unpaid balance at the start of a​ 30-day billing cycle was ​$721.98. A purchase of ​$41.45 was made on day 14. No payment was made during the billing cycle and a late fee of ​$42 was charged to the account on day 27. Find the unpaid balance at the end of the billing cycle. Assume that the annual interest rate on a credit card is 19.44​% and interest is calculated by the average daily balance method.
The unpaid balance at the end of the billing cycle is?
(Round to the nearest cent as​ needed.)

Answer 1

Ans)

Balance Duration	No of days (a)	Balance Amount (b)	(a) * (b)	Remarks
1-13 days	13	721.98	9385.74
14-26 days	13	763.43	9924.59
27-30 days	4	805.43	3221.72
	30		22532.05
	Average Balance	(a)*(b)/(a)
			751.07
	Interest		12.17	19.44%*751.07*30/360
	Outstanding amount	763.24	Avg balance + Interest